Netflix has announced a surge in both profits and subscriber numbers, prompting plans to increase prices in various markets worldwide. Between October and December 2024, the streaming giant saw its net profit double to $1.8 billion compared to the same period the previous year. This financial boost coincided with the addition of nearly 19 million new subscribers, significantly surpassing the anticipated 9.6 million. These developments come as Netflix prepares to adjust its pricing strategy across several countries, including the United States, Canada, Argentina, and Portugal.
Revenue Increase and Upcoming Price Adjustments
Sales for the company jumped from $8.8 billion to $10.2 billion during the same period, reflecting Netflix’s continued growth and expansion. The forthcoming price adjustments will see the standard subscription without advertisements increase from $15.49 to $17.99 per month, while the membership plan with adverts will rise by one dollar to $7.99. The last time Netflix altered its pricing in the U.S. was in October 2023, during which it also adjusted prices for some plans in the UK.
The platform’s remarkable subscriber growth has been bolstered by various popular content offerings, including the second series of the South Korean drama “Squid Game,” which contributed to higher-than-expected subscriptions. In addition, Netflix streamed live events such as two NFL games on Christmas Day and a boxing match featuring influencer Jake Paul and former world heavyweight champion Mike Tyson. Looking forward, Netflix aims to broadcast more live events like WWE wrestling and the FIFA Women’s World Cup in 2027 and 2031.
In a strategic shift, Netflix will no longer report quarterly subscriber growth but will instead announce paid memberships as they reach key milestones. Despite this change, the company remains committed to expanding its content library, including more live events and new original productions.
In response to queries about future pricing decisions, a Netflix spokesperson stated there is “nothing to share right now.” However, the company noted its rationale behind asking members to pay more occasionally:
“We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix” – Netflix
What The Author Thinks
Netflix’s latest financial and subscriber growth is a testament to its ongoing dominance in the streaming sector. The decision to increase subscription prices globally is a strategic move to capitalize on its current momentum and invest in future content and technological advancements. While this may present short-term challenges in subscriber retention, especially in competitive markets, the long-term benefits of expanded and enhanced content offerings could well justify the price adjustments. Netflix’s focus on diverse and live content could continue to differentiate it from competitors, maintaining its appeal among a broad audience.
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